Conditions of a Perfect Hammer:
. Body height must be short.
. The total height of the candle must be taller than the Daily ATR-264. The taller the candle is, the stronger the Hammer is.
. The lower shadow’s length should be very tall. It is better to be over 75 percent of the Daily ATR-264.
. The upper shadow does not exist, or if it does, it is very small. It...
Hammer Candle Stick Definition
If there was a large drop in price in the middle of the day, but before the day ended it increased to what it was at the beginning of the day and even more, a significant upward return occurred. The candlestick of this change (move) will be a Hammer in a daily time frame. A Hammer formation on the daily time frame is a very strong...
Trade current Heikin-Ashi monthly trend long or short/bonds/cash
Reverse trade with a decisive break of the 7 period Moving Average at close of monthly candle
Decisive means non-Doji candle with body 50% or more above/below the 7MA
Doji or indecisive break of 7MA may just be consolidation, stay with current trend
PRO-GAP Tutorial
Today is Monday and GBPAUD formed a PRO-GAP
Definition of pro gap is:
the gaps' direction is the opposite of the last candle's direction.
We can see Last Friday's closing price was 1.6793
and this morning's opening price was 1.6849
which means all the sellers who sold in the last candle were trapped.
Therefore a good trading plan was...
Good chart reading and technical analysis do not have to be complicated. A trader should focus on a few key principles when trying to understand a price chart.
In my trading, I have stripped away everything that doesn’t provide value and I have optimized the points on my checklist that I use to read price charts. Below you see the current EUR/USD chart on the...
If I'm asked about what is the most interesting part for inside bar trade, my answer is "trailing".
1st kick is only for risk management purpose to make me able to deposit the risk to other trades, the outstanding risk-reward ratio is about the other half of the positions.
The other half is very important so I need it to run as much as possible, so I NEVER put...
A beautiful reverse pattern in the EURUSD invites to a short trade.
What are the signs for a short?
perfect evening star formation
CCI turns again below 100
overdue correction
changing monetary policy
How could a trade look like?
There are several possibilities.
Short-term trade: Entry immediately, SL at 1.1979 and TP at 1.1718
Medium to long-term...
Inside bar setups work the best when there is momentum, and momentum comes from news, fundamental events, chart patterns, short squeezing, and many other ways.
The 2 inside 4hr bars for AUD/USD implied great risk-reward ratio!
1st one only 25pips risk and gave an 150 pips move; 2nd one only 10 pips risk and gave an 90 pips move!
The larger the time frame, the...
3 long wicks together is an eye catcher. It helps you start thinking that the market may reverse. Look for other confirmations from resistance levels, ma's, macd and rsi crossover the 0 line. Easy to see and place stop loss. My TP in the US session is 20-30 pips. This trade ran 61 pips. We have many different strategies to learn on our blog and we are constantly...
Everyday you want to watch how the market reacts around 10 am EDT. There is usually an options release that may be being protected. Sometimes the market will do a pull back at that time range. Watch candle patterns, BB, Macd and RSI for possible direction. SL easy to see and place. TP can go to an approaching MA or a set 10 pips or greater. Yellow 20 sma had 28...
we may use price action differently but this is how i use it and the 3rd part of it its very difficult its not for beginners. its advanced price action. but will do more of educational stuff for the next month
Point and Figure Charts (PnF) are another example of a chart type that relies solely on price movements and not time intervals during the creation of the chart. In this way, PnF Charts are similar to Renko, Kagi and Line Break Charts. A basic understanding of PnF Charts is that they are comprised of a series of columns made from either X's or O's. X columns...
